money functions sfls

Introduction to Money

"For I don't care too much for money, for money can't buy me love." - The Beatles

"Money, if it does not bring you happiness, will at least help you be miserable in comfort." - Helen Gurley Brown"If you would

know the value of money, go and try to borrow some." - Benjamin Franklin

"The easiest way for your children to learn about money is for you not to have any." - Katharine Whitehorn

"The art is not in making money, but in keeping it." - Proverb

"Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver." - Ayn Rand

"When I was young I thought that money was the most important thing in life; now that I am old I know that it is." - Oscar Wilde

"Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one." - Benjamin Franklin

"Money often costs too much." - Ralph Waldo Emerson

Check out the story of “The Island of Yap” and their giant stone money, really makes you think about exactly what this thing called money is.

Also check out the history of the Brazilian money called the “Real.” The reason it’s call the Real is very interesting, it started out as fake money that the government tricked millions of people into using.

Incorrect use and understanding of money can lead to things like inflation, which is a terrible monster, it ruins lives and can destroy whole countries, all because the little pieces of paper that they trade becomes unstable.

Introduction to Money:

3.) Characteristics of Money

1.) Types of Money2.) Functions of Money

Introduction to Money:

3.) Characteristics of Money

1.) Types of Money2.) Functions of Money

- the direct exchange of goods and services for other goods and services.

- It requires double coincidence of wants for trade to take place. Money eliminates this problem.

Barter

***Life without money:

Some Vocabulary

One of the first and longest used things as money in the world.

- Money is a lubricant 润滑剂 in the functioning of a market economy.

Liquidity

Some Vocabulary

- takes the form of a commodity with intrinsic 固有 value.

Commodity money商品

1.) The Types of Money

Examples:

- gold - silver - cigarettes

Commodity money

1.) The Types of Money

Examples:

- coins- currency - bank deposits

- Latin for “let it be done” - It is used as money because of government decrees 政令- It does NOT have intrinsic value.

Fiat money

Introduction to Money:

3.) Characteristics of Money

1.) Types of Money2.) Functions of Money

1.) Medium of Exchange 交换媒介

2.) The Functions of Money

- A medium of exchange is anything that is readily acceptable as payment.

{Leo and me with stuff

Barter picsThese type of things might make OK mediums of exchange to barter with, but isn’t good enough to be money because they don’t have the other aspects needed to be money.

2.) Unit of Account - is the yardstick准绳

people use to post prices and record debts.

1.) Medium of Exchange

2.) The Functions of Money

{Leo and me with stuff

Barter pics

Kind of hard to count things like this huh? Not all the same size either.

2.) Unit of Account

1.) Medium of Exchange

3.) Standard of Deferred payment

- Can be used as something to pay with in the future.

1.) The Functions of Money

{Leo and me with stuff

Barter pics

Corn might start out like this…

{But will become like this.

2.) Unit of Account

1.) Medium of Exchange 3.) Standard of Deferred payment4.) Store of Value- is an item that people can use

to transfer purchasing power from the present to the future.

2.) The Functions of Money

{

Corn wasting away in fields…

Again, corn might start out like this…

{But doesn’t keep it’s value very well. Can you think of other things like this?

Zimbabwe津巴布韦

and its famous inflation通货膨胀

Check out this story too, they have some of the most interesting (and useless) money in the world.

Introduction to Money:

3.) Characteristics of Money

1.) Types of Money2.) Functions of Money

Durability耐久力

3.) Characteristics of Money

- retains the same shape, form, and substance over an extended period of time.

Durability

可移植性

3.) Characteristics of Money

- money can be easily moved from one location to another.

Portability

Durability

可分性

3.) Characteristics of Money

- can be divided into small increments that can be used in exchange for goods of varying values.

PortabilityDivisibility

Durability

均匀性

3.) Characteristics of Money

- each increments is interchangeable and the same.

PortabilityDivisibility Uniformity

Durability

3.) Characteristics of Money

- cannot be easily duplicated.

PortabilityDivisibility Uniformity Limited Supply

So to Summarize…

ii.) Unit of Account

i.) Medium of Exchange iii.) Standard of Deferred paymentiv.) Store of Value

2.) Functions

Money

Durability

3.) Characteristics

PortabilityDivisibility

Limited Supply

Uniformity Some

Vocabulary BarterLiquidity

1.) TypesCommodity moneyFiat money

An Overview of Money

Money is a promiseMoney is trust

Money is paper (something close to it )

Money is Bull S#!%

The End

Thank you